Interview: Island-wide customs operations to put Hainan Free Trade Port in global spotlight: U.S. expert

by Li Xirui

NEW YORK, Dec. 17 (Xinhua) -- The launch of island-wide customs operations at the Hainan Free Trade Port will draw significant global attention to China's southern Hainan Island in the period ahead, according to a U.S. expert.

The island-wide special customs operations would combine the strengths of China's manufacturing industry with global shipping and give the province more global recognition, Doug Guthrie, professor and director of China Initiatives at the Thunderbird School of Global Management at Arizona State University in the United States, told Xinhua in an interview.

Such attention is no accident, he said. Located at the crossroads of the Pacific and Indian Oceans, the island sits squarely on emerging global trade routes as China's southern gateway to Southeast Asia, Africa and other fast-growing markets, positioning it to play a larger role in the shifting economic geography of Asia.

The recent special customs operations, he suggested, reflect China's broader shift toward deeper global engagement. "The global movement is not just about China being a big supplier for the world, it's about Chinese companies going global," he said.

In terms of trade, the island will expand the coverage of its zero-tariff policy to 74 percent of imported goods, with further expansion planned. Supported by simplified customs clearance procedures, it will improve cross-border trade efficiency, creating low-cost and high-efficiency trade advantages.

"One of the great strategies is having a free trade port ... where goods are going to flow through Hainan is going to be really beneficial for this," he said.

Guthrie noted that amid growing uncertainty in the global economy, the tariff-free zones connected to Hainan could help reduce these pressures and play a stabilizing role in global trade.

As Apple's former senior director in Shanghai, Guthrie said Hainan has the potential to draw foreign investment. The island is poised to attract investment in logistics and supply-chain operations.

Meanwhile, Guthrie noted that Hainan's growing role points to broader changes in China's development strategy, including greater attention to regions beyond the country's major cities.

"It becomes a gateway for the flow of components and modules" for final assembly elsewhere, Guthrie said, highlighting the opportunities Hainan offers to other countries.

Hainan's rapid development is drawing international talent and fostering educational partnerships. Guthrie noted that Arizona State University recently launched a dual-degree program in e-commerce and international trade with Hainan ASU International College, highlighting growing educational exchanges between China and the United States.

The Hainan Free Trade Port is the country's largest special economic zone. Its strategic position and policy flexibility have made it significant to the country's long-term plan to advance its opening-up at the institutional level. ■